Under the Punggol 21 initiative, plans to turn the area into a new residential town were announced in 1996 and development of the town started in 1998. Due to the Asian financial crisis in 1997 and the financial troubles within the construction industry in 2003, the plan did not fully materialise. In 2007, a new initiative, the Punggol 21-plus plan, was introduced to redevelop the area into a waterfront town. Punggol is divided into 7 subzones, namely, Coney Island, Matilda, Northshore, Punggol Canal, Punggol Field, Punggol Town Centre and Waterway East.

Punggol Point or Tanjong Punggol appears as Tanjong Rangon on Franklin and Jackson's 1828 map of Singapore. Punggol, also spelled Ponggol, means "hurling sticks at the branches of fruit trees to bring them down to the ground" in Malay. It could also refer to a place where fruits and forest produce are offered wholesale and carried away. These possible names indicate that Punggol was a fruit growing district. The place is said to take its name from the river Sungei Ponggol.

Ponggol also means "a stump of a tree", especially "a high stump". There are suggestions that the word is Tamil (Pongal, "the feast of the boiling rice", is celebrated when the sun enters the sign of Capricorn). However, the word Ponggol or Punggol is definitely Malay.

The Punggol West LRT is located in relatively undeveloped surroundings in 2006. As of 2015, one can no longer view the LRT Station directly from this point of view. The plain area with Matilda House shown here, has been developed into new HDB flats and condominiums.

Located in the vicinity of the Punggol Jetty, Punggol was believed to have existed 200 years ago before Sir Stamford Raffles founded Singapore. The Punggol area used to be a well-established rural district dotted with farmhouses and farm structures, which were serviced by roads and dirt tracks. It was one of the oldest settlements in Singapore. The original settlers were predominantly Malays. The early Chinese immigrants, who settled in Punggol from the mid 19th century onwards, were engaged in plantation work, mainly rubber. As the population of the Chinese increased, many Chinese villagers were then engaged in poultry, pig or fish farming, as well as farm produce. The last pig farm closed down in 1990. Hydroponic non-pollutive vegetable farms and orchid farms used to flourish along the Cheng Lim Farmways and Buangkok Farmways, along with old kampongs and low-rise residential areas. Most of these farms have given way to the high-rise HDBflats of Sengkang New Town and Punggol New Town.

Historically, Punggol was populated mostly by Teochews and Catholics. However, the original settlers were predominantly Malays. The end of Upper Serangoon Road is known to Teochews as kangkar or "river bank" or "river mouth". Ferries were used on the Serangoon River as transport. An old market was also located here. The Catholic missionaries arrived here 140 years ago and set up churches and schools. A Malay kampong, which has since been cleared, could also be found at Tanjong Punggol. At the end of Punggol Port Road, Indonesian and Malaysian fishermen auctioned their catch at the wholesale fish market.

In the 1960s, basic amenities like piped water, electricity, paved roads, and drainage systems were introduced through government and self-help programmes. It was also at this time that television became popular and antennas could be seen installed on many kampong rooftops.

Punggol was also known for its sumptuous seafood and boatels that provided services like docking and renting of boats for boating, water skiing and skindiving lessons. These seafood restaurants and boatels have since been relocated in the mid-1990s to facilitate land reclamation works.[4] Poultry and pig farms were also gradually phased out when redevelopment commenced in the 1970s. The last pig farm closed down in 1990. Land vacated by resettled farmers were then tendered out on short term leases for non-pollutive agricultural activities, which included hydroponic non-pollutive vegetable and orchid farms that used to flourish along the Cheng Lim Farmways and Buangkok Farmways. These farms existed along with old kampongs and low-rise residential areas. Most of these farms have given way to the high-rise HDB flats of Sengkang New Town and Punggol New Town.

Punggol in 2002, with the first phase of the Punggol 21 plan completed

In his National Day Rally speech on 18 August 1996, then-Prime Minister Goh Chok Tong announced the Singapore Government's plan to develop Punggol, known as "Punggol 21". Punggol 21 was a new model for housing, which would feature a new concept in housing as a model for new towns in the 21st century. It would have a mix of private houses, executive condominiums, and high-grade HDB flats grouped into smaller, distinctly designed estates. Each estate would contain between 1,200 and 2,800 units, with a common neighbourhood green. Every housing unit would be located within 300 metres of the nearest LRT station. Schools, libraries, and community clubs would be clustered for convenience, and there would be three commercial centres, including shopping centres.[5][6]

However, Punggol 21 did not materialise fully as Singapore's economy was affected by the Asian economic crisis in 1997. Although construction began the next year, it was stopped when demand for new flats fell sharply. Plans were again delayed when the construction industry in Singapore experienced financial troubles in 2003. As a result, only some 16,000 flats, out of the 80,000 planned units, have been built as at 2007. There was only one shopping mall in the estate, Punggol Plaza, and there were no recreational facilities like cinemas or swimming pools.[7][8] As of January 2016, a second shopping mall in the estate, Waterway Point, has opened, and recreational facilities have since been planned within the estate.

The Punggol Discovery Cube is a visitor's centre for residents and visitors to learn about Punggol's history.

In his National Day Rally speech on 19 August 2007, Prime Minister Lee Hsien Loong offered a new vision for Punggol New Town, and introduced the "Punggol 21-plus" plan to re-vitalise the town.[7][9][10][11][12]

The "Punggol 21-plus" project involves 18,000 new HDB and private flats, and about 3,000 new flats will be built in Punggol New Town every year. Punggol New Town is projected to have 96,000 units when fully developed in the long term. Waterfront housing will have stepped courtyards. There will be a promenade on the northern sea front, stretching about 8.7 km. An integrated waterfront commercial and residential development has also been planned at the town centre, which will be built on both banks of the waterway. The site for this project was put up for sale and named Waterway Point with condominium – Watertown.[8][9][13] There will also be other facilities within the town centre, which includes a community club, regional library and hawker centre in the future.[14]

Punggol Central will be converted into a tree-lined boulevard with landscaping. Coney Island, on the other hand, was opened to the public in 2015.[13]

Waterway View is one of the newer waterfront housing estates under the "Punggol 21-plus" project.

Strategically located near Coral Edge LRT Station, Punggol Plaza is the first shopping mall in Punggol New Town. Opened in September 2004, it offers residents the convenience of fulfilling all their marketing needs at one place, with an NTUC FairPrice supermarket located on the third floor of the plaza and a food court operated by Koufu on the ground floor. Free shuttle services between Punggol Plaza and Sengkang New Town have been provided since September 2004.[25]

Located beside the Punggol Waterway and Punggol MRT/LRT Station, Waterway Point is the largest mall located in Punggol New Town. It is integrated with a town square and a visitors' centre which provides an avenue for residents and the public to learn more about the heritage of Punggol through exhibitions and civic and community events and also features the first underground and largest suburban cineplex in Singapore.[26] The mall had a soft launch on 18 January 2016,[27] and was officially opened on 19 April 2016.[28]

Oasis Terraces was announced in October 2015 by the Housing and Development Board (HDB) as part of two new neighbourhood centres in Punggol, the other one being Northshore Plaza.[29] Oasis Terraces also houses the Punggol Polyclinic which opened on November 24, 2017, offering outpatient medical care, X-ray, physiotherapy, podiatry services and women health services such as screening for cervical and breast cancer.[30]

Punggol Waterway Park is a riverine park located along the Punggol Waterway. Opened in October 2011, the park is designed with four themes to cater to residents of all ages. It also provides residents opportunities for leisure activities such as jogging and cycling which can be carried out along the promenade at both sides of the waterway.

Safra Punggol Clubhouse

Located near Punggol Waterway Park beside Sam Kee LRT Station on the Punggol LRT West Loop, the Safra Punggol Clubhouse is a five-storey recreational facility. Announced to be built in June 2014, the clubhouse caters to mainly NS men and their families features an indoor water playground and a large eco-themed childcare centre. Completed in 2016, the clubhouse houses 10 F&B outlets such as themed restaurants, alfresco dining and quick-service outlets. Its other amenities includes a gym, bowling alley and a karaoke outlet.Punggol Safra was officially opened on 24 April 2016.[31]